80% Pass
1.For William to be an eligible individual and qualify for an HSA, which of the following must be true?
a. He cannot be claimed as a dependent on someone else’s return.
b. He must have an HDHP and cannot be enrolled in Medicare.
c. He cannot have any other health coverage.
XXXd. All of the above.
(INCORRECT)
2.What amount will William use to compute his HSA deduction on Form 1040, line 25?
XXXa. $0
b. $1,000
c. $1,300
3.William’s employer contributions to his HSA are reported on his Form W-2, box 12, code W.
XXXa. True
b. False152
4. The amount that can be contributed to an HSA depends on the following:
a. Taxpayer’s age and type of HDHP coverage
b. Date the taxpayer became eligible
c. Date taxpayer ceases to be eligible
XXXd. All of the above
(INCORRECT) 4. Sam and Carol can have a joint HSA. XXXTrue False
5.Sam and Carol are both eligible to increase their contribution limit because Carol is age 55 or older.
a. True
XXXb. False
5. Because Carol is age 55 or older, she is eligible to increase her HSA contribution by $_1000_______.
6. The amount of Valerie’s HSA contribution reported on Form 8889, line 2 is $750.
XXXa. True
b. False
7.The amount of total distributions reported on Form 8889, line 14a is:
a. $750
b. $1,095
c. $1,545
XXXd. $1,945
7. What form will Valerie receive that reports her HSA distributions? A. Form 5498-SA XXXB. Form 1099-SA C. Form 1099-MISC D. Form W-2
8.What is the amount reported on Form 8889, line 15?
a. $595
b. $1,095
XXXc. $1,545
d. $1,945
8. Which of the following expenses will not be included on Valerie's Form 8889, line 15? A. Dental visit B. Contact lenses needed for medical reasons XXXC. Health club fees D. Visits to the chiropractor
9.The adjustment to income on Form 1040, line 25 for Carlos’ HSA deduction is:
a. $1,600
XXXb. $3,350
c. $3,500
d. $6,750
(INCORRECT) 9. Carlos' HSA deduction amount on Form 1040, line 25, is $__3350______.
10.Whose qualified medical expenses can Carlos include for HSA purposes?
a. Carlos
b. Andrea and Roberto
XXXc. Carlos, Julie, Andrea, and Roberto
d. Carlos, Julie, Andrea, Roberto, and Sergio
10. The amount Carlos paid for Julie's eyeglasses is a qualified medical expense for HSA purposes. XXXTrue False
11. On his Form 8889, Carlos can include the $200 paid for Andrea’s over-the-counter allergy medicine as a qualifying medical expense for HSA purposes.
a. True
XXXb. False
12.The amount of Yvette Kohen’s health savings account deduction reported on Form 1040, line 25 is $3,000.
a. True
XXXb. False
12. The amount Yvette Kohen will report on her Form 8889, line 13 is: A. $800 B. $1,000 XXX C. $3,000 D. $3,800
13.Yvette’s total income includes a taxable HSA distribution of:
a. $0
XXXb. $150
c. $425
d. $550
14.The amount of unreimbursed qualified medical expenses reported on Form 8889, line 15 is $_1300____.
15.What is the amount of additional tax reported on Form 8889, line 17b?
a. $0
XXXb. $30
c. $55
d. $85